Daily Gold Market Report

Gold starts the week on the downside driven by speculators in the paper markets
WGC: Gold prices have increased by a robust 11% annually over the past 50 years

(USAGOLD – 6/5/2023) – Gold is starting the week on the downside as speculators reacted to the prospect of higher rates, entrenched inflation, and an alarmingly (in certain quarters) strong economy. It is down $6 at $1945. Silver is down 13¢ at $23.55. While the Fed and rates have dominated the paper trade over the past year, concerns about the financial system’s stability have driven record safe-haven demand in the physical market, particularly among central banks and private investors. (See interactive chart below.)

Pointing out that gold prices have increased by a robust 11% annually over the past 50 years, the World Gold Council says, “investors want protection in tough times—and historically, this is when gold shines moving higher when equities and other riskier assets are under pressure. Unusually though, gold can also move higher when these assets are in positive territory. This ability to perform in good times and bad is based on gold’s varied demand and makes it a uniquely efficient asset for an investment portfolio.” [Source: World Gold Council/Reuters]

Chart courtesy of the World Bank

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